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You can invest in artificial intelligence through individual public-company stocks or AI-themed exchange-traded funds (ETFs). The options differ in what they count as AI exposure, how they select companies, and how concentrated the investment may be. Parag Agrawal, the former Twitter CEO, is now identified as the founder and CEO of AI startup Parallel; the available source does not establish that he is a billionaire or that he has recommended buying AI securities.
What does “investing in AI” mean?
AI is not a single sector with one standard investment. Public-market exposure can include companies that build AI models, make chips, provide cloud computing, operate data centers, supply networking, power or cooling infrastructure, sell enterprise software, or use AI in other industries. These businesses occupy different parts of the AI supply chain, and an association with AI does not by itself show how much AI-related revenue a company earns or whether its shares are attractively priced. For a supply-chain overview, see the AI supply-chain analysis.
There are two broad routes: choose individual companies, or use a fund that holds a basket of companies. A fund can spread exposure across multiple holdings, but it does not remove market risk or guarantee that the companies it selects will benefit from AI.
How can you invest in AI?
Buy individual public-company shares
Buying shares gives you exposure to the specific company’s business and risks. A company might develop AI models, sell the chips and infrastructure needed to run them, or apply AI within a broader business. Before investing, examine its financial disclosures and consider how significant AI is to its actual business rather than relying on an AI label or announcement.
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Consider an AI-themed ETF
An ETF holds a group of securities and trades on an exchange. AI-themed ETFs can use different methods to choose their holdings. For example, the First Trust Bloomberg Artificial Intelligence ETF prospectus says the fund seeks results that generally correspond to the Bloomberg Artificial Intelligence Index, before fees and expenses. That is an example of an index-tracking objective, not a guarantee of performance or a recommendation. Read the fund’s current prospectus and materials at the fund’s SEC-filed prospectus information.
Distinguish index funds from actively managed funds
An index-tracking fund follows an index’s rules for selecting and weighting holdings. An actively managed fund instead relies on an adviser to choose investments based on its own strategy. SEC-filed materials for active strategies describe potential exposure to areas such as cloud computing, semiconductors, memory, networking, data-center infrastructure, power and cooling, software, deployment platforms, and cybersecurity. Those descriptions state a strategy or belief; they do not independently establish that a company will benefit from AI. See SEC-filed active-fund strategy materials.
| Approach | How holdings are chosen | What to check |
|---|---|---|
| Individual stocks | You choose particular companies. | The company’s business, financial disclosures, AI-related revenue or role, valuation, and risks. |
| Index-tracking AI ETF | An index’s stated rules determine the portfolio. | Index methodology, constituents, weighting, fees, and rebalancing. |
| Actively managed AI ETF | An adviser selects holdings according to the fund’s strategy. | Selection rationale, current holdings, concentration, costs, turnover, and risk disclosures. |
What should you compare before investing in an AI fund?
Fund names can make strategies sound more alike than they are. Use the current prospectus, summary prospectus, holdings, and fee schedule to compare funds rather than relying on the theme name alone.
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1Repair Windows errors before they cause bigger problems2Fix the driver behind crashes, sound loss and screen glitches3Clear out junk files and repair common Windows errors- Objective and selection method: Check whether the fund tracks an index or lets an adviser select companies, and read how the index or adviser defines AI exposure.
- What “AI exposure” includes: A fund may focus on direct AI products, infrastructure providers, companies adopting AI, or a wider ecosystem. A thematic label does not prove current or future AI revenue or prospects; BlackRock says its screen is not a view of companies’ current or future AI revenue, exposure, or prospects in its AI outlook.
- Holdings and concentration: Review the largest positions, sector and geographic mix, and overlap with funds you already own. A thematic fund may be less diversified than its name suggests.
- Costs and turnover: Check the current expense ratio, trading costs, and portfolio turnover in the fund’s latest materials. These figures change, so they should be verified rather than inferred from older summaries.
- Risks: Consider competition, fast-changing technology, capital needs, valuation swings, execution risk, and the possibility that the theme or a particular ecosystem underperforms. A Harbor prospectus describes the risk that a concentrated ecosystem strategy could lag if competitors or other platforms win adoption; consult the SEC-filed risk disclosures.
- Fit with your circumstances: A thematic investment should be considered within your overall financial plan and in light of your time horizon, risk tolerance, tax situation, and jurisdiction. A qualified financial adviser can help assess individual circumstances.
Current fees, live holdings, performance, and a comprehensive list of AI funds are not established here. Confirm them in each fund’s current documents before comparing specific products. SEC filing or registration is not SEC approval of a fund as an investment or validation of its prospectus.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Does Parag Agrawal recommend investing in AI?
A July 2026 Kleiner Perkins podcast description identifies Parag Agrawal as founder and CEO of Parallel and former CEO of Twitter; the episode concerns AI-agent web infrastructure. That source supports describing him as an AI startup founder and former Twitter CEO, but it does not establish billionaire status or show him recommending public-market AI investments. See the Kleiner Perkins profile and episode description.
Investor enthusiasm is not evidence that a security is likely to rise. TIME’s 2026 interview with Masayoshi Son reports his enthusiasm for buying more Nvidia stock while focusing on OpenAI and AI infrastructure. That is his stated view, not a forecast or a recommendation for readers; see the TIME interview.
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